Will upgrades to my car mean increasing in my auto insurance premiums?

Upgrading your vehicle might seem like a good idea at first, but consumers don't know that this might affect their auto insurance premiums to increase, at times dramatically. Upgrades, additions and extras such as sound systems, pinstriping, or DVD players are all expensive gizmos that might cost a lot of money.

However, keep in mind that in some cases your upgrades will not be covered, particularly if you haven't reported them to your auto insurer and paid extra premiums.

If you don't report these upgrades, they won't be covered. Dave Hurst of State Farm claims, "Your best bet is to contract your agent or your insurance company and tell them what you've done to the car. Your insurer can then decide if the company needs to increase your coverage and therefore your premium.'

According to Don Griffin of the National Association of Independent insurers, this means saving your receipts for your car upgrades is necessary. "If you've done some heavy investing in upgrading the car, or if you've done something like put in a new engine on an older car, you'll want to let your insurance company know, and back up the value you're starting with receipts.'